European Stocks Poised to Decline Amid US-Iran Tensions, Despite Israel-Lebanon Ceasefire

European stocks are set to fall on Thursday as tensions escalate between Washington and Tehran, even as a ceasefire was agreed between Israel and Lebanon on Wednesday evening.

London's FTSE 100 looks set to open 0.5% lower, according to IG futures data, while France's CAC 40 is slated to open 0.3% lower and Germany's DAX is seen opening down 0.2%.

Tensions between Iran and the U.S. on Wednesday sent Asian stocks lower overnight, and European equity markets look set to follow suit.

The Kuwait International Airport was struck by Iran early Wednesday, just a day after the U.S. Central Command said it had defeated multiple Iranian ballistic missiles and drones, as well as launching "self-defense strikes" on Qeshm Island in the Persian Gulf. This was in response to "attempted attacks" by Tehran, it said.

If necessary, Israel and the U.S. are prepared to strike Iran again, Israeli Prime Minister Benjamin Netanyahu told CNBC in an interview.

"Israel is ready and the U.S. forces are ready. I think Iran should take that into account. I think they are taking into account, but they're playing with fire," Netanyahu said.

Oil prices dipped slightly on the news that Lebanon and Israel have agreed to the implementation of a ceasefire, according to a joint statement with the United States released by the State Department on Wednesday following negotiations in Washington.

The ceasefire is contingent on a complete cessation of fire from the Iran-aligned Hezbollah militia and the evacuation of all its operatives from the South Litani Sector, according to the statement. The two sides had agreed last month to a ceasefire, but hostilities had continued.